Slide 1: Full Year Results 2024: Securing sustainable growth
Full Year Results 2024 Securing sustainable growth 6 March 2025 1
Slide 2: Cautionary statement
Cautionary statement In order to utilise the ‘safe harbour’ provisions of the U.S. Private Securities Litigation Reform Act of 1995 (the “PSLRA”) and the general doctrine of cautionary statements, Rentokil Initial plc (“the Company”) is providing the following cautionary statement: This communicatio
Slide 3: Agenda | Full Year Results
Agenda | Full Year Results Introduction Andy Ransom Group Financial Results, Regions and Categories Paul Edgecliffe-Johnson North America Review and Actions Andy Ransom Q&A All 3
Slide 4: 2024 Summary
2024 Summary Challenging year for the Group: Results in line with revised guidance • Revenue of £5.6 billion, +3.9% (CER), of which Organic Growth was 2.8% • North America Organic Revenue growth of 1.5% • Group Margin of 15.4%, impacted by North America margin reduction to 17.1% Paul will now cover
Slide 5: North America in 2024
North America in 2024 Making progress on many parts of the plan Integration • Branch systems integration progressing well: 58 branches in H2 taking the total NA branches now operating on our ‘Best of Breed’ systems suite to over 250 • Delivered first full branch migrations with rerouting and pay pla
Slide 6: North America in 2025
North America in 2025 Action plan to reignite growth Reviewed our growth plan, the changing requirements for effective organic search performance and lead generation, and progress of the branch integrations. Taking action: Integration 1. Full integration is now scheduled to restart early H2; plannin
Slide 7: Financial, Region and Category Review
Full Year Results 2024 Financial, Region and Category Review Paul Edgecliffe-Johnson 7
Slide 8: CFO's First 90 Days – Initial Observations
CFO’s First 90 Days – Initial Observations • Great people. Strong culture. Hungry for success • Excellent industry dynamics. Strong medium term growth characteristics (see Appendix) • The opportunity for Rentokil Initial to grow sustainably is very significant • The addressable pest control market i
Slide 9: Group Financial Highlights
Group Financial Highlights Revenue +3.9%, with +2.8% Organic Revenue, FY 2024 £5,587m including 4.7% International Δ Δ £ million AER CER AER CER Adj. Operating Profit Profitability impacted by North Revenue 5,436 5,587 1.1% 3.9% £860m America Adjusted Operating Profit 834 860 -7.0% -4.2% Free Cash F
Slide 10: North America
North America Organic Revenue +1.5%: • Pest Control +1.5%; Pest Control services for commercial, residential and 2024 Δ termite customers +1.4% • H2 organic growth of 1.8%, with improved final quarter, up 2.3% Revenue £3,347m +1.3% Adj. Operating Margin in line with revised guidance at 17.1%, impact
Slide 11: Targeting post-integration North American margin of 20%+
Targeting post-integration North American margin of 20%+ • Further gross cost synergies delivered in 2024, however significant investments behind salary and benefit harmonisation, safety, innovation and IT, plus inflation • Significant 2024 sales and marketing investments, a portion of which in 2025
Slide 12: International business
International business All regions outside of North America Organic Revenue +4.7%: • Pest Control +5.3%; Hygiene & Wellbeing +3.2%; Workwear +7.1% 2024 Δ • +5.0% in Europe incl. LATAM; +4.3% in UK &SSA; +5.4% in Asia & MENAT; Revenue £2,229m +8.2% +3.2% in Pacific Organic Revenue +4.7% Adjusted Oper
Slide 13: Pest Control
Pest Control Global leader in pest control 2.9% Revenue growth to £4.4bn 2.5% Organic growth - NA: 1.5% £5,000 £900 - International: 5.3% £4,500 10-yr CAGR £800 10-yr CAGR £4,000 18.5% £700 18.2% 24 deals in Pest Control with acquired £3,500 £600 annualised revenues of c.£90m £3,000 £500 Adjusted Op
Slide 14: Hygiene and Wellbeing
Hygiene and Wellbeing Strong ‘sister’ business to Pest, shared overheads and density focus Revenue Growth +8.4% to £931m 1000 200 Organic Revenue of +3.1% 900 10-yr CAGR 180 10-yr CAGR 160 6.3% 7.8% Continued to expand core range e.g. 800 140 Signature AirFlow Scent (new battery-free 120 air freshen
Slide 15: Workwear
Workwear 4% of Group Revenue £250 Organic Revenue growth of 7.1%. 45 8-yr CAGR 8-yr CAGR £225 40 Adjusted Operating Profit growth 3.7% 4.7% of 8.6% and margin of 17.7% £200 35 Strong new business sales, including 30 £175 account gains and upselling £237 £42 £221 25 £38 £150 Inflation was successfull
Slide 16: Group Adjusted Cash Flow
Group Adjusted Cash Flow @AER £ million 2024 2023 Adjusted Operating Profit 834 898 Depreciation 308 300 Other 35 30 Adjusted EBITDA 1,177 1,228 Commentary One-off and adjusting items (Non-Cash) (15) (11) Working capital (105) (47) Working capital outflow of £105m. In H2 a higher Movement on provisi
Slide 17: Capital Allocation
Capital Allocation Continuing our balanced capital allocation approach Grow a Invest for Invest for Return excess sustainable growth growth through capital to ordinary organically bolt-on M&A shareholders dividend Maintain a strong balance sheet 2.0x – 2.5x net debt / EBITDA under normalised conditi
Slide 18: Technical Guidance for 2025
Technical Guidance for 2025 P&L Guidance Cash Flow Guidance • Restructuring costs: $10m; and One offs and Adjusting items excl. • One-off and adjusting items: c.$70m-$80m Terminix c.$15m • Working Capital: c.$75m-$85m outflow and provision • Terminix integration costs to achieve*: c.$55m-$65m paymen
Slide 19: North America Review and Action Plan
Full Year Results 2024 North America Review and Action Plan Andy Ransom 19
Slide 20: Review and actions to drive growth in North America
Review and actions to drive growth in North America 1. Delivering the integration • Progress in 2024: Core IT stack, branch systems integration, and re-routing and pay plan pilots • Actions: Overview of our plan for 2025-26 2. RIGHT WAY 2 Growth Plan • Update on the plan: Where we are making good pr
Slide 21: Good progress in 2024 on integration to Best of Breed IT platform
Good progress in 2024 on integration to Best of Breed IT platform First Terminix branch systems integration completed ▪ Integrated 58 branches in H2 - with Revenues of $373m; c.1,000 service technicians; mainly Terminix Residential. Over 250 branches in North America now operating on our standard ‘B
Slide 22: Undertaking a Complex Integration in North America
Undertaking a Complex Integration in North America Full branch integration restarts early H2 Q4 2022 2023-24 2025 End of 2026 Terminix Deal Completes Integration Underway Branch Migrations Completion ▪ 2 businesses ▪ Legal merger ▪ Core systems working well in ✓ Optimised branch network ▪ 70+ system
Slide 23: RIGHT WAY 2 Growth Plan
RIGHT WAY 2 Growth Plan Context for our Q1 Review EMPLOYER OF CHOICE Organic Growth is generated from both existing Retention: Brand Service (left hand side of the model) and new customers Quality SERVICE Sales Propositions (right hand side of the model) SALES Marketing Customer SEO Retention Paid O
Slide 24: Good progress in several areas including colleague and customer retention
Good progress in several areas of the plan including colleague and customer retention NA Colleague Retention +4.2% ▪ Service technicians: +4.2% to 76.0%, good progress ▪ Sales colleagues: +6.4% - particular focus for the year ▪ Improved retention of new colleagues (0-12 months) and longer tenured ▪
Slide 25: Further progress on Trusted Advisor participation and Terminix brand awareness
Making further progress on Trusted Advisor participation and Terminix Brand awareness Trusted Advisor participation increasing Developed Trusted Advisor with increased branch manager focus, reporting and training ▪ First innovation launched in 2024 – EcoCatch and FlexiArmour ▪ Terminix Technician le
Slide 26: Terminix enjoys very strong brand equity
Terminix enjoys very strong brand equity About half of those aware of Terminix on a Total Awareness Basis would consider using the brand for their pest control needs. Total Brand Awareness has reached almost complete saturation US Competitor Brand Total Awareness = unaided + aided; Familiarity = ver
Slide 27: Disappointing leads generation and sales execution
Disappointing leads generation, particularly Organic, and sales execution Weak lead flow - Organic and paid search Primarily used Paid Search lever in 2024 - organic search disappointing Primary focus for marketing support on Terminix brand, less priority on other brands ▪ Hired new CMO and team. Re
Slide 28: Accelerating Marketing and Sales Execution in 2025
Accelerating Marketing and Sales Execution in 2025, supported by local branches and brands 1. Raising the Bar 2. Marketing 3. Sales conversion Build on Progress to Date Drive Leads Generation Focus on Sales Execution ▪ Rigorous focus on colleague ▪ Need to accelerate owned, earned ▪ Sales responsibi
Slide 29: Satellite Branches
Satellite Branches Using low-cost satellite branches Satellite branches to drive more localisation, getting the business closer to our customers Current main branch network ▪ Some current locations 20-miles from city centres. Less residential, less populated areas. Limited brand presence. Physical l
Slide 30: More Brands: Powerful regional brand presence
More Brands Powerful regional brand presence America’s Number One World’s leading Pest Control Additional highly recognised regional brands in brand for Pest Control brand in c.90 countries residential and commercial pest control High awareness amongst Focus on large commercial, Outstanding brands t
Slide 31: Summary
Summary 2024 performance in line with revised guidance Branch integration ▪ Restart now planned for early H2; integration targeted to complete by end 2026 Need to improve significantly on leads and sales ▪ Implementing key changes that will deliver a powerful regional brand presence and over 500 bra
Slide 32: Number One – many market leading positions globally
1. Number One – many market leading positions globally, Growth and Emerging markets 2. Supportive market drivers – global market expected to grow at 5 – 6% to 2028* 3. Powerful multi-brand strategy – combination of global, national and regional brands 4. Over 1,500 branches worldwide 5. Deep experti
Slide 33: Rentokil Initial awards and rankings
r » | | : a Rentokil Initial WORLD'S AIK BEST WORLD'S ost TRUSTWORTHY COMPANIES COMPANIES statist 2024 2024 L Newsweek I | Statista % l Rentokil SECTOR WINNER Initial PROTECTING PFOPLF | ENHANCING LIVES | PRESERVING OUR PLANET
Slide 34: Terminix Termite Control
Terminix Termite Control Further progress made on legacy termite liability 3500 ✓ Total filed warranty claims: Total filed warranty claims reduced by a further 1% in 2024 vs prior 3000 year and by 45% since 2019 2500 ✓ Open warranty claims further reduced: 20% reduction in 2024 vs. prior year and by
Slide 35: Consistent Operating Model
Consistent Operating Model Colleague retention and customer satisfaction & retention increasing Employer of Choice Customer Service • 68,500 colleagues - high • State of Service: 98.3% engagement, long-service and (‘23: 97.8%) safety culture • c.7.25m post service customer • Highly trained - 2.6m tr
Slide 36: Operating in Attractive Markets
Operating in Attractive Markets Global and US market leaders in an exciting long-term growth market Population growth and more people are living in urban areas. 57% of the world’s population, 4.7 billion A global leader in urban pest control inhabitants, live in cities today; expected to rise to 80%
Slide 37: Transforming commercial Pest Control through AI, IoT, data & machine learning
Transforming commercial Pest Control through AI, Internet of things, data & machine learning 500,000 PestConnect devices in customers’ premises (February 2025) 36% growth in connected devices installed in 2024 1.7m data messages received from our devices per day PestConnect accounts for c.25% of Ren
Slide 38: New PestConnect Optix utilises AI and camera technology
Transforming commercial Pest Control through AI, Internet of things, data & machine learning New PestConnect Optix utilises AI and camera technology Provides 24/7/365 early warning system for pests Motion-detection cameras capture images of rodents, which are then sent to the cloud for analysis by R